Location: Kosciusko County, IN | Metro: Kosciusko County, IN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $840 | $124,570 | 0.67% | D |
| 2BR | $1,100 | $183,319 | 0.6% | D |
| 3BR | $1,330 | $275,060 | 0.48% | F |
| 4BR | $1,450 | $343,153 | 0.42% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 46510, Claypool, Indiana, is set at $1,020 per month for the fiscal year 2026. This figure represents the payment standard under the Section 8 Housing Choice Voucher program, which is the maximum amount that the government will pay to landlords on behalf of eligible tenants. It's important to note that this is not the actual rent you would charge; it's the ceiling for the government subsidy.
In comparison, the average rent for the area is slightly higher at $1,098, based on recent Census American Community Survey (ACS) data. This indicates that the market rent is above the FMR, leaving room for landlords to potentially charge a tenant the difference between the FMR and the actual rent. However, the total rent should be reasonable and comparable to other rentals in the area to ensure compliance with the program.
The demand for rental properties in this area is reflected by the 5.2% share of renters among all households. While this percentage might seem low, it translates into a steady demand for affordable housing options, especially in a rural setting like Claypool where many residents may qualify for assistance through the Section 8 program.
If you're looking to acquire a property in ZIP 46510 for your first Section 8 rental, the median home value stands at $226,947. This is a significant investment, but it can be a lucrative opportunity if managed correctly. The key to success is ensuring that the property meets all the required standards for the Section 8 program, including safety, habitability, and cleanliness.
Before making the final decision to enter the Section 8 market, verify that your property complies with the Housing Quality Standards (HQS) established by the U.S. Department of Housing and Urban Development (HUD). These standards cover a range of criteria to ensure that the living conditions are safe and decent for tenants. A thorough inspection can save you time and money in the long run, avoiding potential disqualification or costly repairs.
By understanding the payment standard, local market rates, and the importance of meeting HQS requirements, you can make an informed decision about whether ZIP 46510 is a suitable location for your first Section 8 rental property.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.